IRVINE, Calif.--(BUSINESS WIRE)--Prudential Real Estate, an HSF Affiliates LLC real estate brokerage
network, today released results of its fourth quarter Consumer Outlook
Survey indicating that consumers’ perception of residential real estate
is increasingly favorable, and that consumers are more committed to
buying and selling homes in 2014 than they were during the previous year.

In fact, favorability toward real estate reached 78% among all
respondents, a 5-point jump from the previous quarter and 15 points
higher than at year-end 2012. Millennials’ perception of real estate is
most favorable, peaking at 87%. Respondents’ growing optimism yields
resolve, as 76% of likely transactors and 63% of all survey participants
indicated they were more committed to buying/selling homes in 2014.

“Consumers understand that the U.S. economy and residential real estate
continue moving in positive directions,” said Earl Lee, CEO of HSF
Affiliates LLC. “Accordingly, they’re feeling much better about their
personal situations and want to take advantage of attractive home prices
in many markets and interest rates that remain low by historical
standards.”

Respondents acknowledged that macro-economic events of 2013, such as
government sequestration and rising interest rates, impacted their
personal finance decisions. However, they look to the new year with
anticipation: A full 65% are optimistic about the housing market in 2014
and a nearly 60% believe home sales will increase during the year. Half
of all respondents believe that the rate of appreciation in U.S. home
values will slow this year after a strong run in 2013.

“Normalcy is returning to residential real estate,” said Lee. “People
are seeking homes for all the right reasons – to gain shelter and
security, raise a family and generate long-term wealth.”

While financial concerns certainly play a role in the decision to buy or
sell, homeownership remains a deeply personal decision. Owning a home is
important to 96% of Americans, and 78% agree that homeownership is an
important part of the American dream. When asked about their experience
buying and selling in today’s economy, 72% of respondents said that
finding the right home and community are crucial to their family’s
happiness.

Caution remains in the marketplace. “Decreasing home values” is the No.
1 concern of respondents, followed by “saving enough for a down
payment.” Underscoring the stringent lending guidelines that are still
in place from the industry downturn, just 39% of respondents believe it
will be easier to secure a mortgage loan in 2014. Consumers also
acknowledged that tight housing inventory may impact their home-buying
decisions this year: 67% expect to face more competition for homes on
the market.

These and other hurdles call for advice and guidance from real estate
professionals. A full 64% of survey respondents indicated that a good
agent can help them make the right choices about the type of home and
community they want; 62% said a good agent can help maximize
homeownership investment. Among millennials, 70% said a good agent can
help them maximize their investment and 62% say now, more than ever,
they look to a real estate agent for sound guidance on a real estate
transaction.

“Consumers are increasingly sophisticated about real estate and many
come to the table armed with impressive research,” said Stephen
Phillips, COO of HSF Affiliates. “However, they will always need an
experienced agent to pull it all together, assess opportunities,
negotiate in good faith and keep everything moving for a successful
transaction.”

The full survey details are available upon request. An infographic
illustrating survey findings is available here.

Prudential Real Estate Outlook Survey Methodology

Interviews with 2,500 Americans who are “in the market” to buy or sell a
home were conducted online by Edelman Berland in December 2013 and
January 2014. Respondents are aged 25-64 with a household income of at
least $50,000. The margin of error is +/-1.96% for all respondents.

About Prudential Real Estate and HSF Affiliates LLC

Prudential Real Estate is a part of the HSF Affiliates LLC real estate
brokerage family, which includes Berkshire Hathaway HomeServices and
Real Living Real Estate. Most Prudential Real Estate franchisees are
independently owned and operated. Visit www.prudentialrealestate.com
for details.

HSF Affiliates LLC, based in Irvine, Calif., is a joint venture of which
HomeServices of America, Inc., the nation’s second-largest, full-service
residential brokerage firm, is a majority owner. HomeServices of America
is an affiliate of world-renowned Berkshire Hathaway Inc.

Prudential, the Prudential logo and the Rock symbol are service marks of
Prudential Financial, Inc. and its related entities and are used under
license with no other affiliation with Prudential.